Monolithic Power Systems (NASDAQ:MPWR) Releases Quarterly Earnings Results, Beats Expectations By $0.63 EPS

Monolithic Power Systems (NASDAQ:MPWR) released its quarterly earnings data on Thursday. The semiconductor company reported $6.50 earnings per share for the quarter, beating the consensus estimate of $5.87 by $0.63, FiscalAI reports. Monolithic Power Systems had a net margin of 24.41% and a return on equity of 22.78%. The company had revenue of $980.64 million during the quarter, compared to analyst estimates of $903.30 million. During the same quarter in the previous year, the business posted $4.21 EPS. Monolithic Power Systems’s revenue for the quarter was up 47.6% compared to the same quarter last year.

Here are the key takeaways from Monolithic Power Systems’ conference call:

• Record Q2 revenue reached $981 million, up 22% sequentially and 48% year over year, with growth across all markets and particularly strong performance in enterprise data and communications.
• Enterprise data revenue rose 45% sequentially, prompting management to raise its full-year growth floor for the segment from 85% to 130%; executives cited low channel inventories, strong bookings, new customers, platform refreshes and rising module content.
• Communications revenue increased 80% sequentially, driven by optical-module power solutions and expanding power products for switches, TPUs and NIC cards. Management also sees continued adoption of 48-volt vertical power modules and further share-gain opportunities.
• MPS is broadening its addressable market with initial DDR5 high-speed memory-controller orders, sampling 800-volt data-center AC-to-DC solutions using its silicon-carbide technology, and expanding automotive design wins; the board also authorized an additional $500 million in stock repurchases.
• Management remains cautious about consumer markets and notebook-related storage and compute in the second half, while industrial growth is expected to be modest and primarily design-win driven. The company said 2027 growth remains structurally attractive but is too early to quantify, and new opportunities such as RCDs, building automation and robotics are not expected to materially affect 2026 revenue.

Monolithic Power Systems Stock Up 8.3%

Shares of NASDAQ MPWR traded up $109.85 during trading on Friday, reaching $1,426.03. The company had a trading volume of 1,545,687 shares, compared to its average volume of 862,098. The stock has a market cap of $70.06 billion, a PE ratio of 87.43 and a beta of 1.71. Monolithic Power Systems has a 12-month low of $706.00 and a 12-month high of $1,714.09. The business’s 50-day moving average is $1,440.58 and its 200 day moving average is $1,314.27.

Monolithic Power Systems Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th were paid a $2.00 dividend. This represents a $8.00 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Tuesday, June 30th. Monolithic Power Systems’s dividend payout ratio (DPR) is presently 57.68%.

Key Monolithic Power Systems News

Here are the key news stories impacting Monolithic Power Systems this week:

• Positive Sentiment: Q2 results exceeded expectations: Monolithic Power reported adjusted earnings of $6.50 per share versus the $5.87 analyst consensus, while revenue reached $980.64 million, up 47.6% year over year and well above the $903.30 million estimate. Monolithic Power Systems Q2 earnings report
• Positive Sentiment: AI and data-center demand is accelerating: Enterprise Data revenue surged 164.3%, and management highlighted expanding AI infrastructure demand, capacity investments and broader power-management solutions as key growth drivers. MPWR Q2 earnings call highlights
• Positive Sentiment: Strong third-quarter outlook: Management projected approximately $1.14 billion to $1.16 billion in third-quarter sales, substantially above the roughly $980 million consensus estimate, reinforcing expectations for continued growth and operating leverage. Monolithic Power beats Q2 earnings estimates
• Positive Sentiment: Analysts raised targets: KeyCorp increased its target to $2,100 with an overweight rating, Truist raised its target to $1,889 with a buy rating, and Wells Fargo lifted its target to $1,800 with an overweight rating. Analyst forecasts after strong Q2 results
• Neutral Sentiment: Rosenblatt reaffirmed a neutral rating, although it raised its price target to $1,575, suggesting some analysts believe much of the near-term improvement is already reflected in the valuation. Rosenblatt rating
• Negative Sentiment: Valuation remains a risk: MPWR has risen sharply over the past year and trades at a high earnings multiple, leaving the stock vulnerable to profit-taking if AI demand, margins or future guidance fail to meet elevated expectations. MPWR valuation analysis

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on MPWR shares. Oppenheimer set a $1,700.00 price target on shares of Monolithic Power Systems in a research note on Friday, May 1st. Truist Financial raised their target price on Monolithic Power Systems from $1,805.00 to $1,889.00 and gave the company a “buy” rating in a research note on Friday. Weiss Ratings raised Monolithic Power Systems from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, June 12th. Stifel Nicolaus raised their price objective on Monolithic Power Systems from $1,300.00 to $1,500.00 and gave the company a “buy” rating in a research note on Thursday, April 16th. Finally, Citigroup reiterated a “buy” rating on shares of Monolithic Power Systems in a report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Monolithic Power Systems presently has a consensus rating of “Moderate Buy” and an average target price of $1,705.82.

Insider Transactions at Monolithic Power Systems

In other news, EVP Maurice Sciammas sold 30 shares of Monolithic Power Systems stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $1,351.61, for a total transaction of $40,548.30. Following the sale, the executive vice president owned 1,149 shares in the company, valued at $1,552,999.89. This trade represents a 2.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jeff Zhou sold 486 shares of Monolithic Power Systems stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $1,680.00, for a total transaction of $816,480.00. Following the completion of the transaction, the director directly owned 3,800 shares of the company’s stock, valued at $6,384,000. The trade was a 11.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 69,370 shares of company stock valued at $112,702,503. Company insiders own 3.60% of the company’s stock.

Institutional Trading of Monolithic Power Systems

A number of hedge funds have recently added to or reduced their stakes in MPWR. State Street Corp boosted its holdings in shares of Monolithic Power Systems by 2.1% in the 4th quarter. State Street Corp now owns 2,180,419 shares of the semiconductor company’s stock valued at $1,979,610,000 after buying an additional 45,715 shares in the last quarter. Price T Rowe Associates Inc. MD increased its position in Monolithic Power Systems by 7.5% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,691,394 shares of the semiconductor company’s stock valued at $1,533,013,000 after buying an additional 117,596 shares in the last quarter. First Trust Advisors LP raised its stake in Monolithic Power Systems by 56.6% in the fourth quarter. First Trust Advisors LP now owns 701,454 shares of the semiconductor company’s stock valued at $635,770,000 after buying an additional 253,653 shares during the last quarter. Bank of America Corp DE increased its holdings in shares of Monolithic Power Systems by 18.0% during the second quarter. Bank of America Corp DE now owns 692,747 shares of the semiconductor company’s stock valued at $506,661,000 after acquiring an additional 105,721 shares in the last quarter. Finally, Morgan Stanley raised its position in shares of Monolithic Power Systems by 16.2% in the 4th quarter. Morgan Stanley now owns 649,070 shares of the semiconductor company’s stock valued at $588,294,000 after purchasing an additional 90,399 shares during the last quarter. 93.46% of the stock is owned by hedge funds and other institutional investors.

Monolithic Power Systems Company Profile

Monolithic Power Systems (NASDAQ: MPWR) is a fabless semiconductor company that designs and supplies high-performance power management solutions for a broad range of electronic systems. Founded in 1997 and headquartered in Kirkland, Washington, the company focuses on analog and mixed-signal integrated circuits that convert, regulate and monitor electrical power with an emphasis on efficiency, integration and power density.

MPS’s product portfolio includes DC?DC switching regulators, power modules, power management ICs (PMICs), LED drivers, battery-management ICs, motor drivers, and AC?DC power solutions.